Revenue collection from DSE thrives 84pc in April
Sponsor-directors shares sale keep earnings afloat
Babul Barman | Tuesday, 7 May 2019
The government's tax collection from the prime bourse jumped 84 per cent month-on-month in April riding on shares sales by sponsor-directors and placement holders.
Market analysts said higher shares sale by sponsor-directors and placement holders in April kept the government earnings afloat despite trading activities fell sharply. 
According to statistics available with the Dhaka Stock Exchange (DSE), the sponsor-directors and placement holders sold shares worth Tk 7.26 billion during the month under review.
The government collected revenue worth nearly Tk 433 million in April which was Tk 235 million in March, 2019, registering an increase of 84 per cent month-on-month, the DSE data shows.
Of the total earnings in April, Tk 363 million came from share sales by sponsor-directors and placement holders.
A leading broker said it was the highest earnings from the sponsor-directors and placement holders share sale in recent months.
The daily average turnover on the DSE came down to Tk 3.49 billion in April, which was Tk 4.84 billion in March, 2019, the DSE data shows.
DSEX, the prime index of the main bourse, also slumped 289 points or 5.26 per cent during April to close the month at 5,202 points.
The government earned nearly Tk 70 million from the TREC (trading right entitlement certificate) holders' commission.
The DSE, on behalf of the government, collects tax as TREC holders' commission and share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer.
Meanwhile, the government collected revenue worth Tk 2,293 million in 10 months (July-April) in the current fiscal year, rising 11 per cent, from Tk 2,057 million in the same period of the previous fiscal, the DSE data shows.
The DSE paid tax worth Tk 2.72 billion in FY 2011-12, Tk 1.27 billion in FY 2012-13, Tk 1.54 billion in FY 2013-14, Tk 1.74 billion in FY 2014-15, Tk 1.58 billion in FY 2015-16, Tk 2.46 billion in FY 2016-17 and Tk 2.33 billion in FY 2017-18 on TREC holders' commission and share sales by sponsor-directors and placement holders.